US Threatens Trade Penalties Against Nigeria, 59 Other Economies Over Forced Labour

The United States has announced plans to impose trade penalties on Nigeria and 59 other countries for failing to adequately ban or enforce restrictions on goods produced with forced labour. According to the Office of the United States Trade Representative, a Section 301 investigation revealed that several countries had not taken sufficient action to address the issue, which is deemed 'unreasonable and burdens U.S. commerce.' Nigeria is among 54 economies accused of failing to both prohibit and effectively enforce import bans on goods made with forced labour. Other countries on the list include Algeria, Egypt, Morocco, South Africa, China, India, Vietnam, the United Kingdom, and Brazil. The proposed penalties could add 10 per cent or 12.5 per cent in additional duties to the existing 10 per cent baseline tariff, potentially pushing Nigeria's total rate to 27.5 per cent. US Trade Representative Jamieson Greer expressed disappointment, stating that 'the failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable.' He added that 'we will no longer tolerate this disparity.' The agency argues that weak enforcement allows unfair competition by lowering production costs in countries where forced labour is not adequately addressed. Six economies, including Canada, Mexico, and the European Union, were noted as having rules in place but failing to enforce them effectively. The proposal is still subject to public consultation and has not yet taken effect.